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Thank you for posting Ted Dziekanowski. The Merck case continues with a court rejecting arguments that insurers shouldn’t have to cover Merck’s losses following the 2017 Not Petya hack. That at the time was not officially attributed to an act of war.
â¬ÅThe exclusion of damages caused by hostile or warlike action by a government or sovereign power in times of war or peace requires the involvement of military action,⬠the judges wrote. â¬ÅCoverage could only be excluded here if we stretched the meaning of â¬Ëhostile⬢ to its outer limit.â¬
Cyber attacks are expensive, as the $1.4 billion price tag demonstrates. One now wonders the effect if nation state backed hacks were excluded at the time. Add to this proposed and impending cyber regulation, then cyber regulation gets pushed ‘Left of Bang’ onto the financial statements of covered entities and along with it a significant amount of risk transfer. Requiring close oversight and assurance from Directors and Officers. Buyer beware is a coin of phrase I would use.
The next question is what will happen to D&O insurance as the momentum for cyber regulatory compliance continues at its current pace?
Rachel V. Rose, JD, MBA Stephen Pitt-Walker, JD, FGIA Jamie Foster Celso De Azevedo FCIArb
#cybersecurity #cyberriskmanagement #merck #cyberinsurance
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